Cavium Beats Q2 Estimates, Will Acquire Xpliant

By Teresa Rivas

Cavium (CAVM) shares were halted after hours following its second-quarter earnings and acquisition announcement.

The chip company said it earned 35 cents a share on revenue of $90.7 million. Analysts were looking for 33 cents a share on revenue of $90.2 million.

The company also said it had reached an agreement to buy privately held Xpliant, Inc. for $90 million. The release describes Xpliant as “a provider of high performance, high density switch silicon targeting a broad range of switching applications for the data center, cloud, service provider and enterprise markets.”

In late April the company gained ground on its upbeat first-quarter earnings report.

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Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.